1⃣ Hopefully it's obvious how important it is for businesses to understand which goods will be subject to tariffs (the goods at risk question). However it's starting to be less and less relevant as time goes by
/2
Whatever the "at risk" logic will be companies will need to provide some sort of proof that their goods/consignments meet the criteria.
They will not be able to do so overnight.
/3
As it's 7.12, we can now safely say that unless something unexpected happens ALL shipments from GB to NI will be subject to tariffs (if there are any) in January. Until companies figure out how to demonstrate that their goods are not at risk.
/4
There are also reasons to believe that demonstrating that goods stay in NI (and are hence not at risk) will not be as easy as we have hoped..
Again, many companies might end up paying tariffs even if their goods stay in NI.
/5
2⃣ (Applies to other borders too), as soon as we have an FTA, companies will need to start thinking about rules of origin. Something that very few of them have looked at until now.
/6
Why? Cause they were busy figuring out customs declarations and border formalities (in addition to other rules).
So again, unlikely that companies will be able to demonstrate origin in the initial few weeks.
/7
To sum up, no matter what happens we can now safely assume that most if not all movements GB to NI in January will be subject to tariffs.
Deal or no deal. At risk or not.
That's just the reality of it.
/ends
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What strikes me the most is the massive difference of language and approach when it comes to tariffs between the UK and the EU and the UK and everyone else.
Remember the 🇬🇧-shaped, best in class trade deals? What do you think they do?
Remember all the DIT tweets about how the continuity agreements will create £££ of opportunities? How things will be cheaper (ehm 👇). That's all tariff reduction.
Seriously, think of the hype around each trade agreement and the marginalisation of the importance of the EU deal - it's the same ppl
700 ppl recruited and trained by French customs. Deployed across ports, airports and train terminals.
Trials, operational guides, rehearsals and "orchestrated logistics sequences"
/2
What I really liked is that throughout the process they worked with the Eurotunnel, ferry operators and ports to understand the current process and use the waiting time that's already there to minimise the impact on lead times and "anticipate" formalities.
/3
As someone who speaks to, trains and advises companies on getting ready for Brexit I just want to say that this by @jdportes and @anandMenon1 is absolutely spot on!
Under normal circumstances, we all use mental shortcuts when speaking about incredibly technical matters to a non-technical audience but this is not what's happening here.
👇and the language used by many politicians is misleading for firms
/2
It matters now more than ever because of how little time we've got left to prepare.
In Jan companies won't need telling that friction is coming cause they will be able to see it when their goods are turned away from the border or when their agent increases fees.
/3
Some, like prices going up or border disruptions, might.
But it is also likely to disproportionately negatively affect some sectors and regions.
/2
And here the immediate impact can be very different from the long term one.
The immediate one being the first few months (up to a year) of general confusions and realisation of all the additional costs and the loss of various possibilities.
/3
I agree. S&S declarations are an interesting one cause I honestly can't understand why (to my knowledge) we did not ask for a waiver similar to what NO & CH have.
A waiver would also make the Irish Sea border a lot simpler.
Recently @pmdfoster prompted me to check the agreements to see if the S&S declarations waiver was related to Single Market commitments or anything else that could make it impossible for the UK and the EU to agree on one.
/2
This is what the Norwegian customs says about this wavier